All Parts which are at any time removed from the Aircraft shall remain the property of Lessor and subject to this Lease, no matter where located, until such time as such Parts shall be replaced by Parts which have been incorporated or installed in or attached to the Aircraft and which meet the requirements for replacement Parts specified above. Immediately upon any replacement Part becoming incorporated or installed in or attached to the Aircraft as above provided, (i) title to the removed Part shall thereupon vest in Lessee, free and clear of all rights of Lessor, (ii) title to such replacement Part shall thereupon vest solely in Lessor, and (iii) such replacement Part shall become subject to this Lease and be deemed a Part for all purposes hereof to the same extent as the Part which it has replaced.



 (b) Alterations, Modifications and Additions. Lessee, at its own cost and expense, shall make or cause to be made such alterations and modifications in and additions to the Aircraft as may be required from time to time to meet the applicable standards of the FAA, or to comply with any Applicable Law, rule, directive, mandatory bulletin, regulation or order of any Governmental Entity during the Term of this Lease or of the manufacturer of the Aircraft, Engines or Parts (collectively, "Mandatory Orders"). Notwithstanding the foregoing, if a Mandatory Order is issued on or after the Commencement Date which must be terminated during the Term, the actual costs of complying with and otherwise accomplishing any such Mandatory Order shall be paid by and such compliance shall be the sole responsibility of Lessee, provided, however, that if no Event of Default has occurred and is continuing, Lessor shall reimburse Lessee for costs incurred by Lessee in terminating any such Mandatory Order in excess of One Hundred Fifty Thousand Dollars (US$150,000.00) under the following formula:



 (X - $150,000) x (84 months - Y) = Z